IDEAS home Printed from https://ideas.repec.org/a/bla/tvecsg/v105y2014i3p331-348.html
   My bibliography  Save this article

Explaining Manufacturing and Non-Manufacturing Inbound FDI Location in Five UK Regions

Author

Listed:
  • Grahame Fallon
  • Mark Cook

Abstract

This paper extends the analysis of foreign direct investment (FDI) location in the UK by exploring the determinants of manufacturing and non-manufacturing inbound FDI location within and between the UK's core (the Southeast) and non-core (West Midlands; Wales; Scotland and the Northwest) regions. Use is made of multiple regression techniques to analyse a set of official, longitudinal data gathered for the period from 1980 to 2005 as a means to this end. The findings offer new insights into the relative influence of regional, national and EU level factors and government policy over FDI location at the UK regional level, and into their variation between regions and sectors of industry. The resultant implications for government policies towards inbound FDI are also considered, including the desirability of allowing them to vary from region to region, if FDI inflows are to be maximised.

Suggested Citation

  • Grahame Fallon & Mark Cook, 2014. "Explaining Manufacturing and Non-Manufacturing Inbound FDI Location in Five UK Regions," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 105(3), pages 331-348, July.
    • Handle: RePEc:bla:tvecsg:v:105:y:2014:i:3:p:331-348
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/tesg.12070
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Guimaraes, Paulo & Figueiredo, Octavio & Woodward, Douglas, 2000. "Agglomeration and the Location of Foreign Direct Investment in Portugal," Journal of Urban Economics, Elsevier, vol. 47(1), pages 115-135, January.
    2. Robert Pearce, 2006. "Globalisation and development: an international business strategy approach," Economics Discussion Papers em-dp2006-35, Department of Economics, University of Reading.
    3. Crozet, Matthieu & Mayer, Thierry & Mucchielli, Jean-Louis, 2004. "How do firms agglomerate? A study of FDI in France," Regional Science and Urban Economics, Elsevier, vol. 34(1), pages 27-54, January.
    4. Mauro Ghinamo & Paolo Panteghini & Federico Revelli, 2010. "FDI determination and corporate tax competition in a volatile world," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 17(5), pages 532-555, October.
    5. repec:hal:spmain:info:hdl:2441/c8dmi8nm4pdjkuc9g8o118937 is not listed on IDEAS
    6. Crozet, Matthieu & Mayer, Thierry & Mucchielli, Jean-Louis, 2004. "How do firms agglomerate? A study of FDI in France," Regional Science and Urban Economics, Elsevier, vol. 34(1), pages 27-54, January.
    7. repec:hal:wpspec:info:hdl:2441/c8dmi8nm4pdjkuc9g8o118937 is not listed on IDEAS
    8. Michael E. Porter, 2000. "Location, Competition, and Economic Development: Local Clusters in a Global Economy," Economic Development Quarterly, , vol. 14(1), pages 15-34, February.
    9. Head, C. Keith & Ries, John C. & Swenson, Deborah L., 1999. "Attracting foreign manufacturing: Investment promotion and agglomeration," Regional Science and Urban Economics, Elsevier, vol. 29(2), pages 197-218, March.
    10. Ian Stone & Frank Peck, 1996. "The Foreign-owned Manufacturing Sector in UK Peripheral Regions, 1978-1993: Restructuring and Comparative Performance," Regional Studies, Taylor & Francis Journals, vol. 30(1), pages 55-68.
    11. Nigel Driffield & Max Munday, 2000. "Industrial Performance, Agglomeration, and Foreign Manufacturing Investment in the UK," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 31(1), pages 21-37, March.
    12. J. Myles Shaver & Fredrick Flyer, 2000. "Agglomeration economies, firm heterogeneity, and foreign direct investment in the United States," Strategic Management Journal, Wiley Blackwell, vol. 21(12), pages 1175-1193, December.
    13. R. Ross Mackay, 2003. "Twenty-five Years of Regional Development," Regional Studies, Taylor & Francis Journals, vol. 37(3), pages 303-317.
    14. repec:rdg:wpaper:em-dp2006-35 is not listed on IDEAS
    15. Grahame Fallon & Mark Cook, 2010. "Exploring the Regional Distribution of Inbound Foreign Direct Investment in the UK in Theory and Practice: Evidence from a Five-Region Study," Regional Studies, Taylor & Francis Journals, vol. 44(3), pages 337-353.
    16. Chakrabarti, Avik, 2003. "A theory of the spatial distribution of foreign direct investment," International Review of Economics & Finance, Elsevier, vol. 12(2), pages 149-169.
    17. Wheeler, David & Mody, Ashoka, 1992. "International investment location decisions : The case of U.S. firms," Journal of International Economics, Elsevier, vol. 33(1-2), pages 57-76, August.
    18. Lee, Bong-Soo & Min, Byung S., 2011. "Exchange rates and FDI strategies of multinational enterprises," Pacific-Basin Finance Journal, Elsevier, vol. 19(5), pages 586-603, November.
    19. Jonathan Jones & Colin Wren, 2004. "Inward foreign direct investment and employment: a project-based analysis in north-east England," Journal of Economic Geography, Oxford University Press, vol. 4(5), pages 517-543, November.
    20. Constantina Kottaridi, 2005. "The 'core-periphery' pattern of FDI-led growth and production structure in the EU," Applied Economics, Taylor & Francis Journals, vol. 37(1), pages 99-113.
    21. Mr. Ewe-Ghee Lim, 2001. "Determinants of, and the Relation Between, Foreign Direct Investment and Growth: A Summary of the Recent Literature," IMF Working Papers 2001/175, International Monetary Fund.
    22. Schneider, Friedrich & Frey, Bruno S., 1985. "Economic and political determinants of foreign direct investment," World Development, Elsevier, vol. 13(2), pages 161-175, February.
    23. Robert Rowthorn, 2010. "Combined and Uneven Development: Reflections on the North–South Divide," Spatial Economic Analysis, Taylor & Francis Journals, vol. 5(4), pages 363-388.
    24. John H Dunning, 1998. "Location and the Multinational Enterprise: A Neglected Factor?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(1), pages 45-66, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tamás Krisztin & Philipp Piribauer, 2021. "A Bayesian spatial autoregressive logit model with an empirical application to European regional FDI flows," Empirical Economics, Springer, vol. 61(1), pages 231-257, July.
    2. Tamás Krisztin & Philipp Piribauer, 2021. "Modelling European regional FDI flows using a Bayesian spatial Poisson interaction model," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 67(3), pages 593-616, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kandogan, Yener, 2012. "Regional foreign direct investment potential of the states within the US," Journal of Economics and Business, Elsevier, vol. 64(4), pages 306-322.
    2. Nielsen, Bo Bernhard & Asmussen, Christian Geisler & Weatherall, Cecilie Dohlmann, 2017. "The location choice of foreign direct investments: Empirical evidence and methodological challenges," Journal of World Business, Elsevier, vol. 52(1), pages 62-82.
    3. Jonas Kleineick & Andrea Ascani & Martijn Smit, 2020. "Multinational investments across Europe: a multilevel analysis," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 40(1), pages 67-105, April.
    4. Jindra, Björn & Hassan, Sohaib S. & Cantner, Uwe, 2016. "What does location choice reveal about knowledge-seeking strategies of emerging market multinationals in the EU?," International Business Review, Elsevier, vol. 25(1), pages 204-220.
    5. Angels Pelegrin & Catalina Bolance, 2008. "Regional Foreign Direct Investment in Manufacturing. Do Agglomeration Economies Matter?," Regional Studies, Taylor & Francis Journals, vol. 42(4), pages 505-522.
    6. Mayer, T. & Mejean, I. & Nefussi, B., 2010. "The location of domestic and foreign production affiliates by French multinational firms," Journal of Urban Economics, Elsevier, vol. 68(2), pages 115-128, September.
    7. Roberto Basile & Luigi Benfratello & Davide Castellani, 2012. "Geoadditive models for regional count data: an application to industrial location," ERSA conference papers ersa12p83, European Regional Science Association.
    8. Disdier, Anne-Celia & Mayer, Thierry, 2004. "How different is Eastern Europe? Structure and determinants of location choices by French firms in Eastern and Western Europe," Journal of Comparative Economics, Elsevier, vol. 32(2), pages 280-296, June.
    9. Lisa De Propris & Nigel Driffield & Stefano Menghinello, 2005. "local industrial systems and the location of FDI in Italy," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 12(1), pages 105-121.
    10. Jonathan Jones & Colin Wren, 2008. "FDI Location Across British Regions and Inward Investment Policy," SERC Discussion Papers 0013, Centre for Economic Performance, LSE.
    11. repec:hal:spmain:info:hdl:2441/c8dmi8nm4pdjkuc9g8mcgcdbi is not listed on IDEAS
    12. Christian Hilber & Ioan Voicu, 2010. "Agglomeration Economies and the Location of Foreign Direct Investment: Empirical Evidence from Romania," Regional Studies, Taylor & Francis Journals, vol. 44(3), pages 355-371.
    13. Aniela Raluca Danciu & Vasile Alecsandru Strat, 2015. "Labor Force – Main Determinant Of the Foreign Direct Investments Located in Romania," Romanian Statistical Review, Romanian Statistical Review, vol. 63(1), pages 3-21, March.
    14. Junjie Hong, 2009. "Firm Heterogeneity and Location Choices: Evidence from Foreign Manufacturing Investments in China," Urban Studies, Urban Studies Journal Limited, vol. 46(10), pages 2143-2157, September.
    15. Chen, George Shih-Ku, 2009. "Agglomeration economies and the location of Taiwanese investment in China," MPRA Paper 13896, University Library of Munich, Germany.
    16. Andrea Ascani & Riccardo Crescenzi & Simona Iammarino, 2015. "Economic Institutions and the Location Strategies of European Multinationals in their Geographical Neighbourhood," LEQS – LSE 'Europe in Question' Discussion Paper Series 97, European Institute, LSE.
    17. Blanc-Brude, Frédéric & Cookson, Graham & Piesse, Jenifer & Strange, Roger, 2014. "The FDI location decision: Distance and the effects of spatial dependence," International Business Review, Elsevier, vol. 23(4), pages 797-810.
    18. repec:hal:spmain:info:hdl:2441/10162 is not listed on IDEAS
    19. Metaxas, Theodore & Duquenne, Marie Noelle, 2015. "Small and Medium Sized Firms’ Competitiveness and Territorial Characteristics by using a MLR approach," MPRA Paper 66848, University Library of Munich, Germany.
    20. Jones, Jonathan & Wren, Colin, 2008. "FDI location across British regions and inward investment policy," LSE Research Online Documents on Economics 33204, London School of Economics and Political Science, LSE Library.
    21. Àngels Pelegrín & Catalina Bolancé, 2006. "Regional foreign direct investment in manufacturing. Do agglomeration economies matter?," Working Papers 2006/2, Institut d'Economia de Barcelona (IEB).
    22. Marc Audi & Amjad Ali & Yannick Roussel, 2021. "Aggregate and Disaggregate Natural Resources Agglomeration and Foreign Direct Investment in France," International Journal of Economics and Financial Issues, Econjournals, vol. 11(1), pages 147-156.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:tvecsg:v:105:y:2014:i:3:p:331-348. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0040-747X .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.